My Opinion

GOP Tax-Cut Feeds Cancer of Inequality – Reclaim the American Dream & in the process who needs American business😜

As President Trump and Speaker Paul Ryan never tire of asserting, the main economic lever in the Republican plan is the cut in the corporate tax rate from 35% to 20%. That will increase the after-tax profits of corporations which typically pass along their earnings to Wall Street and wealthy investors.

Source: GOP Tax-Cut Feeds Cancer of Inequality – Reclaim the American Dream

How did we get to the place where business is a bad thing? When did corporations or even the 1% become our enemy? Ever since the Great Recession the left’s drumbeat has been anti business and wealth and pro equality (whatever that means).

Does anyone seriously believe we can exist without thriving businesses, growing profits, dividends and stock prices? So what if a CEO gets a $10 million stock award; what does that take from you?

My favorite sentence from the above quote is That will increase the after-tax profits of corporations which typically pass along their earnings to Wall Street and wealthy investors.” Yup, that’s it, corporations pass along some of their profits to their shareholders large and small. In fact, it’s not possible to pass along profits just to wealthy investors.

It’s called capitalism and that process has served America very well for centuries. Even today as we seem to stumble a bit America’s lower-income, even poor are well off by world standards. The notion that only “Wall Street” and wealthy investors benefit from growing profits is misleading and harmful liberal rhetoric, rhetoric that is blindly accepted by too many Americans.

According to a 2013 Goldman Sachs report, the total effective household ownership (in US equity markets) is closer to 80 percent when combined with indirect ownership in the form of mutual funds (20 percent), pension funds (16 percent), and insurance policy holdings (7 percent).” In other words, there are very few Americans who do not benefit from growing corporate profits. We should all encourage corporations to pass along profits to their investors … and if you don’t have a piece of that pie, why not?

Stop swallowing the anti-everything that stimulates fiscal America Kool aid from the political left. Even their dreams for society can’t be achieved without growing profits and “wealthy” (1)  taxpayers to foot the bills. 

If you are on the sidelines, get in the game. Think of one non-necessity you spend money on and divert that money to investing.  Everyone has that opportunity.

 

(1) That’s a household income around $100,000 by the way.

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2 replies »

  1. Being stuck inside this winter, I have watched a lot of YouTube videos on the economy, poverty, jobs, minimum wage, and socialism. All of the quality videos, where quality equaled verifiable facts, all have come to the conclusion that increasing a nation’s GDP is the only way to correct these problems. In order to increase output, you have to let free enterprise happen with free markets. Once this happens the standard of living will rise for all. This does not mean that there will not be people in the bottom 10%, it just means they might have 2 TV instead of living in a mud hut. In other words you must let businesses grow, then the jobs will come, and people can accumulate wealth and buy things.

    The videos have also pointed out that the European “examples” are not really doing so well. Their standard of living has a very small growth rate and the people have very little wealth. Why? Because they are so heavily tax to fund their benefits, there is no need to work hard, and many businesses have restrictions. They can’t increase their GDP because a large percentage of the workforce is working for the government producing nothing.

    What nobody points out in America is that there are two countries that freely elected socialist leaders almost at the same time about 20 years ago. These countries nationalised their industry, created massive government regulations, increased the government payroll, and increase welfare benefits, and in the process became corrupt governments. Why did they become corrupt? Because only the party elite were entitled to the benefits that would belong to a company CEO.
    Everybody forgets about Brazil and Venezuela, two socialist examples that have evolved into complete disasters.

    The problem with the American tax cuts was that spending was increased and that will cause major problems down the road. One day we will have to spend our GDP on just paying down the debt thus Americans will no longer be able to accumulate wealth at any level.

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  2. I am 62 and the few times I have owned stock, I lost money because the company Montana Power went bankrupt because of corrupt deregulation scheme. Or, I had to sell the stock because of a personal bankruptcy. But, I agree with lower corporate tax rates, because corporations pass the tax bill to the buyer of their goods and services in higher costs. Maybe we need to teach the politicians this, but I am not sure they have the ability to learn anything.
    If you look at some of the laws that they pass, that hurt the average citizen, way more than they help.

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